U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
OMB Approval
OMB Number: xxxx-xxxx
Expires: Approval Pending
Estimated Average Burden House Per Response: 1.0
(Mark One)
xx Quarterly reports under Section 13 or 15(d) of the Securities Act of
1934
For the quarterly period ended: March 31, 2001
__ Transition report under Section 13 or 15(d) of the Exchange Act
Commission file number: 0-3912
Petrol Industries, Inc.
(Exact Name of Small Business Issuer as Specified in its Charter)
Nevada 75-1282449
(State or Other Jurisdiction of (IRS Employer Identification No.)
Incorporation of Organization)
(318) 424-6396
(Issuer's Telephone Number, Including Area Code)
N/A
(Former Name, Former Address and Former Fiscal Year,
if Changed Since Last Report)
Check whether the issuer: (1) filed all reports required to be filed by
Section 13 or 15(d) of the Exchange Act during the past 12 months (or for such
shorter period that the registrant was required to file such reports), and (2)
has been subject to such filing requirements for the past 90 days.
Yes [xx] No [ ]
APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
PROCEEDINGS DURING THE PRECEDING FIVE YEARS
Check whether the registrant filed all documents and reports required to
be filed by Section 12, 13 or 15(d) of the Exchange Act after the distribution
of securities under a plan confirmed by the court.
Yes ____ No ____
APPLICABLE ONLY TO CORPORATE ISSUERS
State the number of shares outstanding of each of the issuer's classes of
common equity, as of the latest practicable date: 1,597,196
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
PETROL INDUSTRIES, INC. & SUBSIDIARIES
Consolidated Balance Sheets
March 31, December 31,
Assets 2001 2000
------ --------- ------------
(unaudited)
Current assets:
Cash and cash equivalents $ 43,149 50,725
Accounts receivable:
Trade 44,107 52,401
Other 9,498 9,498
---------- ----------
53,605 61,899
Inventory 24,780 41,153
Prepaid expenses 10,421 2,890
---------- ----------
Total current assets 131,955 156,667
---------- ----------
Property and equipment, at cost:
Land 7,000 7,000
Developed and undeveloped oil and gas
properties-successful efforts method 4,142,957 4,138,480
Trucks and other operating equipment 357,986 366,560
Furniture and fixtures 33,347 33,133
---------- ----------
4,541,290 4,545,173
Less accumulated depreciation, depletion
and amortization 4,457,298 4,463,596
---------- ----------
83,992 81,577
---------- ----------
Other assets 1,107 1,107
---------- ----------
$ 217,054 239,351
========== ==========
Liabilities and Stockholders' Deficit
-------------------------------------
Current liabilities:
Accounts payable $ 35,150 39,045
Payable to interest owners 330,934 328,473
Payable to officer, net 845,804 832,252
Note payable 2,000 2,000
Accrued expenses 96,773 92,595
---------- ----------
Total current liabilities 1,310,661 1,294,365
---------- ----------
Stockholders' deficit:
Preferred stock-no par value. Authorized 1,000,000
shares; no shares issued or outstanding --- ---
Common stock-$.10 par value. Authorized 10,000,000
shares; issued and outstanding 1,597,196 shares
in 2001 and 2000 159,720 159,720
Accumulated deficit (1,253,327) (1,214,734)
---------- ----------
Total stockholders' deficit (1,093,607) (1,055,014)
---------- ----------
$ 217,054 239,351
========== ==========
PETROL INDUSTRIES, INC. & SUBSIDIARIES
Consolidated Statements of Operations
Three months ended March 31, 2001 and 2000
(unaudited)
2001 2000
---- ----
Revenues:
Oil and gas sales $ 139,575 204,964
Other operating income 8,758 9,744
--------- ---------
148,333 214,708
--------- ---------
Expenses:
Lease operating expense 129,511 124,479
General and administrative 44,342 68,491
Depreciation, depletion and amortization 2,775 1,666
--------- ---------
176,628 194,636
--------- ---------
Operating income/(loss) (28,295) 20,072
--------- ---------
Other income and (expense):
Gain on sale of assets 40 ---
Interest income 267 187
Interest expense (10,605) (11,082)
--------- ---------
(10,298) (10,895)
--------- ---------
Net income/(loss) $ (38,593) 9,177
========= =========
Net income/(loss) per share (.03) .01
========= =========
Average common shares outstanding 1,597,196 1,597,196
========= =========
PETROL INDUSTRIES, INC. & SUBSIDIARIES
Consolidated Statements of Cash Flows
Three months ended March 31, 2001 and 2000
(unaudited)
2001 2000
---- ----
Operating activities:
Net income/(loss) $ (38,593) 9,177
Adjustments to reconcile net income/(loss) to net
cash provided (used) by operating activities:
Depreciation, depletion and amortization 2,775 1,666
Gain on sale of assets 40 ---
Losses on retirements of property and
equipment included in lease operating expenses --- 494
Changes in assets and liabilities:
Decrease in accounts receivable 8,294 3,214
(Increase) decrease in inventory 16,373 (4,408)
Increase in prepaid expenses (7,531) (8,048)
Increase in accounts payable and
accrued expenses 283 3,613
Increase in payable to officer, net 13,552 41,008
Increase in payable to interest owners 2,461 2,062
-------- -------
Net cash (used) provided by operating
activities (2,426) 48,778
Investing activities:
Capital expenditures (5,190) ---
Proceeds from sale of property and equipment 40 ---
-------- -------
Net cash used by investing activities (5,150) ---
Financing activities:
Purchase and retirement of common stock --- ---
Proceeds from gross borrowings --- ---
-------- -------
Net cash provided by financing activities --- ---
Increase (decrease) in cash and cash equivalents (7,576) 48,778
Cash and cash equivalents at beginning of period 50,725 34,138
-------- -------
Cash and cash equivalents at end of period $ 43,149 82,916
======== =======
PETROL INDUSTRIES, INC. & SUBSIDIARIES
Consolidated Statements of Changes in Stockholders' Deficit
Three months ended March 31, 2001 and 2000
(unaudited)
2001 2000
---- ----
Stockholders' deficit at January 1 $ (1,055,014) (1,020,246)
Net income/(loss) for three-month period (38,593) 9,177
---------- ----------
Stockholders' deficit at March 31 $ (1,093,607) (1,011,069)
========== ==========
PETROL INDUSTRIES, INC. & SUBSIDIARIES
Notes to Consolidated Financial Statements
(unaudited)
1. The accompanying unaudited consolidated financial statements have been
prepared by the Registrant in accordance with generally accepted
accounting principles, pursuant to the rules and regulations of the
Securities and Exchange Commission.
Certain information and footnote disclosures normally included in
financial statements have been condensed or omitted pursuant to such rules
and regulations, although management believes that the disclosures are
adequate to make the information presented not misleading. In the opinion
of management, the accompanying financial statements contain all
adjustments necessary for a fair statement of the results for the interim
periods presented. It is suggested that these consolidated financial
statements be used in conjunction with the consolidated financial
statements and the notes thereto included in the Registrant's 2000 Annual
Report on Form 10-KSB.
2. The consolidated financial statements included herein are consolidated
with the accounts of Petrolind Drilling Funds, Inc. and Realco, Inc., both
wholly owned subsidiaries of the Registrant, neither of which was active
during 2001 or 2000.
3. Net income per share of common stock is computed on the weighted average
number of shares outstanding during the three months ended March 31.
Totaling the number of shares outstanding at the end of each month and
dividing that total by the number of months determined the weighted
average number of shares outstanding.
Total Number of
Shares Outstanding
2001 2000
---- ----
January 31 1,597,196 1,597,196
February 28 1,597,196 1,597,196
March 31 1,597,196 1,597,196
4. The expected tax benefit resulting from operating losses for the first
three months of 2001 has not been recorded because it is not expected to
be realizable. Additionally, there were no significant changes in the
temporary differences that give rise to significant portions of the
deferred tax assets and deferred tax liabilities at March 31, 2001.
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations
With a decrease of approximately 23.3% in production caused principally
by serious inclement weather conditions that prevailed during most of the
period, oil and gas sales revenues decreased significantly during the first
quarter of 2001, as compared to the 2000 period. The Company sustained a net
loss of $38,593, or ($.03) per share compared to a net income of $9,177, or
$.01 per share, in the 2000 period.
The Company realized an operating loss of $28,295 in the first quarter of
2001, compared to an operating income of $20,072 in the first quarter of 2000.
Oil prices averaged $25.80 per barrel during the first quarter of 2001,
compared to an average of $25.72 per barrel in the 2000 period.
The Company had cash and cash equivalents at March 31, 2001, of $43,149,
compared to $50,725 at the end of the 2000 fiscal year. Management estimates
that it owes $330,934 from the settlement of the Horne Lease dispute with Oryx
to owners of other interests in the Horne Lease.
PART II - OTHER INFORMATION
Item 1. Legal Proceedings.
None.
Item 2. Changes in Securities.
None.
Item 3. Defaults Upon Senior Securities.
None.
Item 4. Submission of Matters to a Vote of Security Holders.
None.
SIGNATURE
Pursuant to the requirements of the Securities and Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
Dated: May 10, 2001
PETROL INDUSTRIES, INC.
S/Joseph M. Rodano
By:_____________________________________
Joseph M. Rodano
President and Treasurer